Bitcoin value from 2009 to the present day

At the moment of Bitcoin launch in 2009 its cost was less than $0.01 and it took a few years to unleash the economic potential of the new digital currency and innovative technology.

Catalyst of the new world revolution – Blockchain. The value of blockchain and the new speculation opportunities related with it were growing together with the interest from various economic operators that were entering a brand new market of crypto assets. As the analysis of the historic data set since the BTC launch till now shows, the tendency of its value has a positive correlation with gold and one of the basic stock indexes S & P 500 which is the indicator of the general state of the economy. It follows that both supply and demand have a significant impact on the BTC price, as well as investors’ expectations and some key events like halving. Importance of BTC over time and the effect of halving

Since its advent Bitcoin has undergone two reward halvings. In both cases the considerable price growth was noticed in the following years. This means that such events have a great positive impact on the asset’s value. In fact, after the first halving that took place on 28 November 2012, the BTC price rose from $11 to $1000 in a year. Before the second halving the asset was trading at $700 when in December 2017 in skyrocketed to $20 000. The relative hashrates and mining complexity increased to their historic maximum.

On the other hand, BTC history was also characterized by numerous events which questioned its integrity, frequently examining its vulnerabilities via attacks mostly aimed to falsifications of major transactions of funds held by CEX (centralized exchanges).  These events often lead to cryptocurrency’s depreciation because of short-term loss of confidence. But today most of these vulnerabilities have been resolved due to these troubles, and the crypto world is developing.

Thus, the growth being noticed about crypto investors over the recent two days due to testing the important support level, was also caused by positive sentiments caused by the new halving and partly by the investors’ optimism. Considering all the aspects analyzed in this article, we can imagine different scenarios of the BTC price dynamics.

The world is still fighting with Covid-19, and the second wave can lead to further market slowdown that can affect the Bitcoin rates. Besides, we should note that the recent halving will reduce the market supply. No matter whether the demand increases or remains the same, it will drive the price up. Thus, we would see either the bearish rally correction or the consolidation of BTC rally which can bring euphoria to the market.

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